Overview

Motor vehicles are the largest contributor to air pollution.  The use of alternative fuels can reduce the harmful pollutants and greenhouse gas emissions from vehicles.  Alternative fuels, as defined by the Energy Policy Act of 1992, include ethanol, biodiesel, electricity, hydrogen, natural gas, methanol, and propane.  This guide will focus on biodiesel and E85, as they are widely available in the state of Minnesota. 

Biodiesel is a cleaner burning, non-toxic, biodegradable diesel fuel made from renewable sources such as vegetable oils (new or used).  According to an EPA report, soybean-based biodiesel reduces particulate matter by 10%, hydrocarbons by 21%, and carbon monoxide by 11%.  Nitrogen oxide increases by 2%.  For detailed information on the fuel properties of biodiesel, click here.

Ethanol can be produced from corn grain (primary feedstock for ethanol in the U.S.), sugar cane, and cellulosic feedstock (grass, wood, crop residues, or even newspapers).  E85, a blend of 85% ethanol and 15% gasoline, has been estimated to reduce carbon dioxide emissions by 17-23%.  For more information on E85 fuel properties, click here.

Laws & Guidelines

Minnesota and several other Midwestern states adopted the Energy Security and Climate Stewardship Platform Plan which set the following goals:

• Produce commercially available cellulosic ethanol and other low-carbon fuels in the region by 2012;
• Increase E85 availability at retail fueling stations in the region to 15% of stations by 2015, 20% by 2020, and 33% of all fueling stations in the region by 2025;
• Reduce the amount of fossil fuel that is used in the production of biofuels by 50% by 2025;
• By 2025, at least 50% of all transportation fuels consumed by the Midwest will be from regionally produced biofuels and other low-carbon transportation fuels.

Governor Pawlenty also signed the following executive orders related to alternative fuel use:

Executive Order 04-08: State agencies must take 2 or more actions to reduce their contribution to air pollution.  Recommended actions include the purchase of fuel-efficient, least polluting vehicles, as well as refueling of state fleet vehicles with the cleanest burning fuel available.

Executive Order 06-03: State agencies must take action to "strengthen the infrastructure for increasing the availability and usage of E85 and biodiesel".  State employees must fuel state fleet vehicles with E85.

The Minnesota legislature passed Minnesota Statute 16C.135, requiring state agencies to purchase cleaner fuels when fueling a flex-fuel vehicle and to purchase flex-fuel vehicles, when the costs of the cleaner fuels and the flex-fuel vehicles are similar to other fuels and vehicles that serve the same purpose.

For a summary of all incentives and laws related to alternative fuels in Minnesota, click here.

Performance

E85 and biodiesel have undergone extensive performance testing.  According to the AFDC, biodiesel contains approximately 8% less energy per gallon than regular diesel.  However, most users do not report any changes in fuel economy or vehicle performance.  Biodiesel blends up to 20% (B20) can be used in most diesel engines with little to no modifications and perform well in most situations.  Higher biodiesel blends may experience some problems in colder temperatures, but the Minnesota Soybean Growers Association offers free technical assistance for use of higher blends.

E85 has approximately 27% less energy per gallon relative to regular gasoline.  However, since E85 is typically priced lower than regular gasoline, cost per mile is comparable.  Drivers shouldn't expect to notice any changes in vehicle performance.

Availability

E85 is ubiquitous in Minnesota.  Click here to find an E85 fueling station near you.

All diesel fuel sold in Minnesota contains a minimum of 2% biodiesel (B2).  Biodiesel (containing higher percentages of biodiesel) is available at select service stations throughout the state.  For a list of stations in Minnesota click here.  Biodiesel is most affordable when purchased in larger quantities.  Consider using an existing contract for biodiesel through a cooperative purchasing program (see State of Minnesota's Cooperative Purchasing Venture) or developing your own program.

Other alternative fuels, such as hydrogen and compressed natural gas, are dependent on developing technology and are not widely available yet.

Cost

The U.S. Department of Energy's Alternative Fuels and Advanced Vehicle Data Center publishes a quarterly report on the average regional prices of alternative fuels.  Prices for alternative fuels can fluctuate, but do have the potential to be more stable since biofuels sold in the U.S. are domestically produced.  Click here to access the most recent report on alternative fuel prices.

* Source: AFDC's Clean Cities Alternative Fuel Price Report July

Resources

Clean Air Choice, American Lung Association of the Upper Midwest
www.cleanairchoice.org/fuels
The Clean Air Choice Clean Fuels page provides information on the environmental and health benefits of biodiesel and E85, as well as lists of stations in Minnesota offering alternative fuels.

Alternative Fuels and Advanced Vehicles Data Center (AFDC), U.S. Department of Energy
www.afdc.energy.gov/afdc/fuels
The AFDC website contains a wealth of information on alternative fuels as defined by the Energy Policy Act of 1992, as well as several other fuels currently in development.

Office of Energy Security, Minnesota Department of Commerce
www.state.mn.us/portal/mn/jsp/content.do?subchannel=-536881511&id=-536881350&agency=Commerce
Find general and Minnesota-specific information on biodiesel, E85, and other alternative fuels.

Minnesota Pollution Control Agency
www.pca.state.mn.us/energy/fuels
Details on biofuels production and related legislation within Minnesota.

Minnesota Soybean Growers Association
www.mnsoybean.org
Learn more about an agricultural industry whose crops support biodiesel production.  This site also contains general information on biodiesel's environmental and economic benefits.

Success Stories